All Forum Posts by: Igor Avratiner

Hmmm, I have experience in that area but none with short term rentals. I would probably start by going on AirBnB or something like that and seeing what other rentals are available in the same area. Maybe even contact those hosts and see if they will give you some insights. Does the unit have its own separate entrance? Maybe it can be more profitable as a traditional rental.

Just find ways to get involved that don't cost money. Go to reia groups, start talking to realtors, talk to a mortgage broker about getting pre qualified, call wholesalers from bandit signs, etc. Just start talking to as many people as possible and little by little the big picture will become clearer and clearer. Learn to ask good questions and find ways you can add value for the people you would like to learn from. Maybe even try to get a job in the industry so you can be close to it. In the meantime get good at saving money, 5k is a great start. Sit down and work up a personal budget, run your personal finances like you would run a business, this is good practice. Figure out where you can reduce your expenses, strategically pay down high interest debt, and how much you can save every paycheck. For example many real estate investors would go out and risk their money to earn a 10% return. If you have debt that you are paying 10% on it maybe wise to pay it off. I am not saying that deals haven't been done with 5k and a prayer but I think sometimes being in the right place at the right time has something to do with it. Unless you have a crystal ball you won't be able to predict the time, but you can put yourself in the right place by getting as close to the industry as possible via networking and some of the other things mentioned above. It's one of those things once you start on the path and stay on the path it's not that hard to hit your goals. It's may not be as fast as you would like but if you are consistent you can make anything happen.

For rentals I usually use 10% of the rent. Even if several years go by and you wind up spending less it's good to keep the money in reserve. It is a house and eventually things breakdown. In the past I have also used a flat per unit figure, for example 800 per unit per year. You may want to consider the age of the property and who will be living there.

Hi feel free to send me a message and I would be happy to look at the house. Really have no idea what it's worth until I know more about it.

Sorry I just read above you said your mothers goal is extra income. While rental real estate is a great vehicle for extra income it's not always the easiest path, especially if you are an out of state landlord. If she lives in Miami could she potentially sell this house and buy something closer to her or maybe closer to you in Ohio? Might be easier to manage that way. If the goal is extra income your mother could try to buy an annuity and get extra income without the stress of managing a property in another state. Another thing you said is that she has already invested some money in to it. One thing I learned a long time ago is that you don't have to chase bad money with good money, sometimes you get ahead faster by learning to cut your loses. By the way I speak from experience, 10 years ago I bought a rental in Pittsburgh which is a 6 hour drive from where I live. I learned some hard lessons with that experience.

Serita, to answer your question the violations stay with the property not with the owner, so if the house was sold your mother would be in the clear. However it takes 60-90 days for a deed to be recorded and show up in Philly so if there is a court date scheduled your mother may was to contact the city and let them know it's sold so they postpone the court date. Feel free to message me, I am familiar with code violations and working with the city. I think you mentioned your mother wants to rent it out. So I would ask myself what is my end goal?

Maybe consider selling the property. Trying to figure this out from afar can be stressful.

Thanks for sharing your decision making process and data you uncovered. Also the folks who added the qualitative comments really made this an interesting read. Please share your update and any other data you uncovered in the process that you are willing to share.

By the way there is no wrong answer, just a matter of personal preference.

I would ask myself, am I passionate about being an active real estate investor? If the answer is yes: Than you are well on your way just by asking this question in the forum and receiving all of the great ideas that people have responded with. If you are passionate about this than you will figure it out, and if you do run in to some obstacles (you will) you will have the grit to hang in and find solutions. If the answer is no: Most likely the best thing is to figure out a way to sell it. You will be happier. There are a million ways to passively invest money. And if for some reason the assets class for your passive investment has to be real estate there is no shortage of options you will find that you can feel comfortable with.